>> it's huge. >> every step we take. >> you read the terms of service and know what they do with that information? >> i didn't. >> every move we make. >> you have information on 250 million people. >> sure. >> big data is watching you. >> they will dive into whatever it is and figure out the ramifications of it lart. >> does the government know too much? >> we couldn't have gotten away with half of what the administration does. >> can it be controlled? >> we balance life, liberty and pursuit of happiness all of the time. >> data. help him het the mother load. >> the democrats took it to the

next level. >> fox news report, your secret is out. >> it was in the u.s. capitol behind me that the age of instantaneous electronic communication arguably began. samuel morris opened his first telegraph line between here and baltimore in 1844. the first message he transmitted four words from the old testament "what hath got wrought." what has samuel morris wrought. we generate with our computers phones and other devices an almost continuous trail of electronic data. that information can be stored who knows where anl laysed by who knows whom for who knows what purpose. what does it all mean for the rest of us? our investigation unfolds as a series of stories that would have seemed unconnected a few years ago. a mysterious new spy center rising in the utah desert. an unusual 6th grade class in

massachusetts. an unprecedented get out the vote effort in washington. in today's world they all tied together. we begin with a visitor to my home in atlanta. (knock on door) >> hey, frank, john. >> nice to meet you. >> great to meet you, too. come on in. >> in a prior life, frank ahern of new york city made a living as a skift tracer a private investigator who investigate people who skipped town and don't want to be found. he would use the proverbial paper trail which back in the day was literally made of paper, phone bills, credit cards, receipts and so on. he agreed to come to my home out of side atlanta to follow me around to show how today's paperless trail makes it almost impossible to hide. >> just woke up had a cup of coffee pull out the lap top when

does the data begin? >> the minutite you are on. you are letting the ip company know you are there. the ip knows about us. google knows about us. yahoo knows about us. the e-mail company knows about us. >> i am going to send an e-mail to the lawn service company. >> ahern says he never had this kind of detailed information back in his skip tracing days. >> phone record would say frank called ted at whatever hour. e-mail, frank e-mailed ted this is what he wrote. >> according to the chip maker intel we send 204 e-mails every minute each one generating raw information about ourself that is are indelible. >> if we delete things from our account do we delete it? >> the only delete button you have is on the lap top not on the internet. >> the internet is forever. >> of course it's not just e-mails that can last forever.

on average every minute at least 6 million facebook pages and 1.3 million youtube videos are viewed. >> just turning on my television set, frank, what have i done by doing that? >> you let the cable tv company know one you are home and two you are changing the channel, plus they know what you are watching. >> let's pause here for a second. you probably figure the cable company knew that. but later on we are going to tell you how data mining experts working for president obama's campaign drilled into that information as part of an unprecedented get out the vote effort in 2012. did your tv remote help reelect the president? stay tuned. netflix analyzes when you pause, rewind, fast forward or dump out of a show early. in fact netflix used this data to help develop the much talked about original hit series "house of cards." frank ahern says something similar is happening with my kindle.

i do more and more of my reading on it, books and the daily papers, too. >> from what i understand some of these e reareds are reporting back to the company how quickly i am reading a book the words i am highlighting the sentences i am under lining. >> this is a prime example of what's next you buy a book on-line you find out wow they are tracking me. >> so i have already left a fairly substantial digital trail so far i barely even left the house. i am going to run errands and see what other bread crumbs i dropped. >> ahern points out my gps tracks wherever i go. that's not all. the national highway traffic safety administration proposed regulations requiring auto manufacturers to have event data recorders better known as black boxes in all new cars beginning in september 2014. some insurance companies already offer lower rates if you install one in your current vehicle. but how much is your privacy

worth? you already give up so much unknowingly. >> first thing i am going to do is punch in my customer loyalty number. >> do you know the terms and service of that information? >> i have no idea. >> let's pause here again. it turns out many of those terms of service agreements are a way to learn more about you as a consumer. >> these are often relationships where you are saying, this is my identity here's my name, here's my address. >> brian kennedy is the ceo of a leading data driven marketing services firm. his company builds profiles on consumers to help businesses market to them more directly. >> you have information on 250 million people, the area code plus telephone, bank card, bank card issue date, education level, income, child date of birth, dwelling type. would you be comfortable giving

up as much information about yourself as you have about a lot of people out there? >> yes, absolutely. no qualms. >> no qualms because kennedy says that peak into your private world would make your life into a consumer much more satisfying. which brings me to my next stop with frank ahern, the pharmacy. >> this is pretty innocuous. what little piece of information has been added to my digital profile? >> the credit card company knows you have a child and the pharmacy as well has a record of you having a child. >> if i sent an e-mail if i get gas, if i go to the pharmacy and pick something up what can you learn about a person? >> you can learn a lot. you can trace and track all along. consolidating it is a big problem the scary part. >> a quick stop by the atm where my picture is taken and my bank

records the transaction. as i take off down the road any number of traffic cameras record my route. >> frank, coming up to the tollbooth here. what are we watching for? >> cameras, number one, and taking pictures of your license plate and you have the path, they have a record of where you are going. >> and where you came from. >> i finally arrive at the office, inside i can hardly make a move that isn't recorded in some form. like most big companies fox news uses security cameras and warns us that our on-line activity may be monitored. other companies are going a lot further in this regard. socio metric solutions in boston makes the socio metric bags that senses how employees interact with colleagues. it gauges how much someone talks verses how much they listen. kreshg o ben waiver predicts that in 6 months many companies

will be using this as their id badge. >> you look around you see an imposter by looking at changes in coloration. i can tell when you are leaning in on the conversation when you should be leaning away. that indicates a lot about the interaction. the whole point with this technology is to make places a better place to work to make them more productive. >> back in my office i ask ahern about another device that promises increased productivity, the smart phone. >> that's the gold mine. your phone calls, your texts, your physical location, the apps you use, the e-mails. it is near unlimited. >> by now you are surely thinking that all that digital information has made the job of the skip tracer, the tracking and finding of people who would much rather stay lost a lot easier. and you are right. as we said in the beginning back in new york city ahern is no t. it turns out, big data has

opened up a more profitable line of work. he is now helping people disappear. >> people who are victims of stalkers, people who are high end business, want to make sure their homes can't be located personal things about them family wise. he says he gives the clients the same warning he gives me. >> is it really possible to erase your digital footprint? absolutely not. >> coming up data mining for political gold. how president obama won a second term. hoo-hoo.

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>> there's a line often attributed to thomas jefferson. informed citizenry is the bull of democracy.

what happens if democracy knows more about us than we know about them. peter, welcome to the team. >> thanks, john. the obama campaign did know a lot about us. that might have helped him win a second term. ♪ >> thank you, america. god bless you, united states. >> i so wish that i had been able to fulfill your hopes to lead the country in a different direction, but the nation choose a different leader. >> nearly half of america election night 2012 came as a shock. but the terrible economy and high unemployment at home, new dangers and uncertainty abroad, president obama seemed so beatable. >> my heart and my whole soul were we were going to win. i was there. >> i think we were convinced we would win. we knew that the energy and passion auz with our voters, and

we saw polls that showed i would win in independent places like iowa. >> romney didn't know what obama knew. obama's team had used the advantages of income ben see, time and money to create something new in politics. >> created the perfect political corporation. >> sashaize enburg wrote the book on this signs of political campaigning that obama mastered. >> make sure the people know how to vote. >> by harnessing your data and information borrowed by behavioral psychology they made a virtual profile of every single persuadeable voter in the country giving them personalized messages and getting them to the polls. >> the voters are the guinea pigs. >> this experimental politics was developed in this plain washingt washington, d.c. building afl cio. inside is a secret amenity

called the analyst institute. >> what is the analyst institute? >> liberal groups parties campaigns and consultants that were designed to do he knows and help democrats win elections. >> he likened it to a political manhattan project with the goal of developing political super weapons. it was first seen in a michigan governor's race 6 years ago. a couple of researchers protecting a concept called identity salience. >> they got the preelection get out the vote reminders. one of them said here's your history as a voter. here are your neighbor's vote history. >> then there was a threat. >> a threat to tell your neighbors you didn't vote. >> this increase turned out among people by 20 percent. >> the obama team recognized behavioral psychology could help them shape what voters thought and influence how they behave. it helped obama to define mitt

romney. even conversations obama volunteers had with voters were very scripted. >> they said do you plan oh vote on tuesday. what time do you plan to vote. what will you be doing before hand, where will you be coming from. he know from experiments having make a plan having visualize yourself in advance makes you more likely to follow through on it. >> the campaign embedded several analyst institutes into the election headquarters in chicago. >> what was the cave? >> the cave is where we put the analysts. >> cheryl davidson was director of mede qatar getting for obama campaign. >> the hard-core analysts were in that room for multiple reasons this was our top secret work, right? you don't want the press coming by to see what was on the screens of everyone. during the election we didn't want people to know we existed. >> they workedal go rhythms to determine who the persuadeable voters were in the battle ground

states. carol davidson figured out how to get the obama message to those specific voters. she developed something called the optimizer. it showed her what television shows the persuadeables were watching and when. this information was sold by some cable companies. >> we were able to get the data from our vendor ingest it into the system and at the same time compare the data to the voter profile dat stadata. >> some people think that's creepy all of that data out there used in political campaign. >> you get direct mail sent to your house all of the time. you didn't know the person who sent them hi, peter this is barack obama. that may be jarring. may freak you out. is it just different or is it really a concern about invading your life. >> give me a program i might not expect to see political ads aired on. >> judge judy and all over the place. >> did you have a way of testing

whether or not the optimizer was working. >> if you are define success of we won the election or how did the optimizer specifically do it the only thing i can look at it is we got more impressions, we had larger audience and we paid less for it because we were willing to buy things in untraditional places. >> at one point during the campaign they were running shows on 60 different cable stations where as romney campaign was running shows on 15 different cable stations. >> patrick is a republican consultant who has been preaching to his party for years about political data. >> is one side doing better than the other? >> i don't think it's a question of being behind but question of being on two different planets. >> that's an extreme view but right. >> karl rove is fox news contributor and white house former chief of staff. close to the romney campaign. >> both side micro targeted. the democrats took it to the next level. >> rove says republicans base

their analysis on a single snapshot while obama constantly updated their data. >> the brill yens of tiance of campaign is we need to dynamically do this so as event came into a campaign so we can exploit the openings. >> on election night the romney cavern h camp had no idea what was hitting them. i wonder if that was behind the evenings most talked about television moment. >> one of the biggest blocks of votes in the state are republican suburbs. >> rove was talking to the romney campaign they still believed their man could win. >> they believed it. >> and they believed it. as a matter of fact you are absolutely right hamilton county historically democratic party went into the obama column. >> rove insists republicans can compete and will even win this new political arms race that will excite many gop partisans who just want a victory. but will this new way of

politics just give us better manipulators rather than better leaders? >> what happens to old still political gut and leadership where you are out there trying to sell an idea to people and convince voters this idea is worth voting for? >> you put your finger on a good thing, because if you rely on the data to tidictate everythin to you you make no room for leadership. responsibility of leadership is not just to follow but to mold public opinion in the right direction. >> as with justine, data is power. so how would you feel about a new government data center big enough to collect and store every phone call, e-mail, surveillance video and internet search from around the world?

>> the 4th mainedment to the constitution drafted in 1789 declared among other things that a person's paper would not be subject to unreasonable searchs.

they felt we should be able to keep our letters our diaries or writing private. 140 years later 1929 secretary of state henry l. simpson echoed that sentiment when he shut down the agency that de coded foreign communications. stimpson declared, gentlemen don't read each other's mail. much has changed. a new electronic age of e-mails, tweets and blogs and a new political link posing threats we can't ignore. (explosion) >> pearl harbor taught america what it didn't know could hurt it very much. there was a need to be up on enemy intelligence. >> this form of treachery shall never enendanger -- never agai endanger us. >> after world war ii came the cold war and threat of global

communism. it made a debate over citizen's rights and national securitiment out of that debate came the national security agency or nsa. in the 1950s the spy center was so secretive the joke was the initials today for no such agency. >> what did the president know and when did he know it? >> after watergate, however, people wanted to know what the spy agencies were really up to. in 1975 general lewallen became the first director of the nsa to testify publicly before congress. >> the agency once so secretive was exposed. the public learned that the nsa headquartered in maryland was eavesdropping on messages sent into and out of the country. in response in 1978 the federal government passed the foreign intelligence surveillance act which required the nsa to get warrants from special fisa

corpse before it could form certain surveillance within the united states. the nsa adapted and moved on. with the fall of the soviet union admissions team less urgent submitting and the nsa lagged behind in the latest technology. as general michael hayden the nsa director who took charge in 1999 put it, in an age of telecommunications breakthroughs the nsa was becoming deaf. but 9-11 delivered a shock that was loud enough for everyone to hear. the nsa got a bigger budget and a new mission, stop the next attack. which leads us to a massive data center being built by the nsa in the utah desert. it's capacity to collect and analyze data so enormous it has even former nsa staffers worried. >> it is really a turnkey situation where it could be turned quickly and become a totalitarian state pretty

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staggering. but what you ar's even more sta is an nsa data center five times the size of the capitol behind me essentially filled with memory cards and computer chips. you may not know about it but as cath ridge h katherine herridge reports it may soon know about you. >> utah 25 miles due south of salt lake city and west of the middle of nowhere a massive construction project is nearing completion. the heavily secured site belongs to the national security agency. >> people saw it the spy center. >> the spy center that's what jasmine who works at the local sandwich shop told me last summer. >> do you know what they are going to do this there? >> collect data. >> as good a guess as any the nsa named the utah data center.

>> it is monitoring but no one knows. >> we were approached a couple years ago about possibly bringing water. >> he is the city manager. he was asked to figure out how to supply the center with extraordinary water requirements. >> build a large pump station and we build a 3 million gallon tank to store water. >> a 3 million gallon water tank to run the air-conditioning to cool the computers. the nsa will neither confirm nor deny specifics but some estimate the facility will be capable of storing 5 data bites of data. to give you how much data is in a data bite? think of it this way. one iphone 5 as 16 giga bites of storage. one tera bites would be 62 iphones, stacked that would be 19 inches high. one would be 62,000 iphones which would be higher than an

empire state building. an esta bite would be 52 million iphones higher than the international space station. one dat da bite would be more tn an iphone. if it has five data bytes the data could store cell phone calls google search and surveillance camera in america for a very long time. >> what are they going to do with the data? >> i don't know. it's classified. >> gary herbert is utah's republican governor. >> you have seen the reports, e-mails, phone records, banking records, all of that. >> i have been on the tour i have seen the facilities they give me a general over view of what they are going to be doing but the details and specifics of it you need to get from them. >> all they would tell us is the utah data center is a facility for the intelligence community that would have a major focus on cyber security. >> we are going to take off. >> we weren't given access but

we could see it from the sky. >> i would like to look real close because right now we are 500 feet over the you sadat taw center this is as close as you are going to get without a security clearance. >> cranes at 12:00. >> from the sky it's huge. >> yes. >> races the most serious questions about the vast amount of data that could be kept in one place for many many different sources. >> drake was a senior official at the nsa from august 2001 to 2008 before he resigned for reasons we will tell you about in a second. >> where does this data come from? are we talking about i mails, facebook postings, telephone calls? telephone itineraries? >> i don't know precisely. it can be just about any of that and possibly more. >> westerns should be concern pd letting the government go too far in the way of security. >> the only way to have perfect

security is having perfect surveillance. that's george you are well that's 1994 that's what it would look like. >> drake is not alone in feeling that way. >> whatever you get lobi electronically they could factor. >> he worked at the nsa starting as a data analyst in the days before desk top computers. after 9-11 the nsa began a surveillance program approved president bush. >> it started with telecoms providing building data of records in the united states calling people in the united states. >> mys mat was they were collecting on the order of 3 billion a day. >> 3 billion phone records? >> that's just internal for this country. >> in simple terms nsa any american. >> he thought it was wrong and quit in protest. someone leaked the surveillance program to the new york times in 2005.

the nsa officially discontinued that program in 2007. the same year suspecting he was a source of the new york times leak they raided his home. >> my son answered the door they pushed him back at gun point they came up stairs i was in the shower and one guy came in and pointed the gun at my head ant said come on out. >> an fbi agent points a gun at your head and you are naked in the shower? >> i had a towel. >> he denies being a leaker and ulth matly was not charged with any triem. but a fe -- charged with any cr. a fellow whistleblower was. drake was indicted 5 counts of espionage. they dropped the charges in a deal where he pleaded guilty to a single misdemeanor of misusing a government computer. >> the agreement with the reporter i would not share anything that was classified in any way, shape or form. i continued to believe him. it was lawful and it was appropriate.

>> as the director of the nsa from 1999 to 2005 general michael hayden was drake and benny's boss. >> they may have a different view god bless them. this is america have a different view. i think it made america safe during a feperiod of great dange were. >> he says benny and drake were wrong, uninformed when they said the program was illegal. congress which in 2008 explicitly legalized much of the surveillance going on and president obama who recently reauthorized the law agreed. that makes drake as worried as ever. he believers president obama has used that power even more aggressively than the man democrats accused of shredding the constitution, george w. bush. >> i have had private conversations with people who used to work in the bush administration the reaction is whoa we wouldn't have gotten away with half of what the obama administration is doing. >> the regime has expanded.

>> far less transparent than the bush administration? >> yes. >> that's another reason why pen benny and drake have been critics of the data certainty. >> the question is what are they doing with it, what are the controls, what are the over sites? >> one man hopes to answer it the current director of the national security agency, general keith alexander. when he declined request to sit down with us for an interview we sat down with the a washington think tank where he was speakat. >> will the utah data center hold the data of american citizens? >> no. we don't hold data on u.s. citizens, the people there at nsa. they take protecting your civil liberties and privacy as the most important thing that they do in securing this nation. and so when people just throw out, oh, they are going to have all of this stuff at utah data center that's bologna. that's ludicrous.

i am not going to come out and say here's what we are doing at utah. that would be ridiculous, too, because it would give our adversaries a tremendous advantage. we are not going to do that. >> benny says alexander stations missed the point. this is not about the character of his former nsa colleagues it's about the possibility that the government's stunning new capacity to collect, store and analyze data will test less than normal leaders if not now, than in the future. >> really a turnkey situation where it could be turned quickly and become a totalitarian state pretty quickly. the capacities to do that is being set up. if we get the wrong person in office or in government, they could make that happen quickly. >> life, liberty and the pursuit of happiness. we balance those three virtues all of the time. the question milike me ask the american people, how much more do you want me to do? >> what can a government computer know?

how can it know it? but the nsa mum we go to silicon valley for answers. a little later... >> how many of you have an iphone, an android, a galaxy. >> teaching kids how not to ruin their lives with a smart phone. join us at projectluna.com

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>> ruthless people, risky business, the man who knew too much. these are all videos of recently deceased judge who once rented. who bourque was nominated to the supreme court his rental history was leaked to the press. this privacy violation so outraged people that in 1988 congress made it a federal crime to disclose someone's video rental records. now it seems numerous web sites don't merely know what you watched but what you want to watch next. most people assume the nsa can

know a lot more than that. can they? claudia would ycowen reports. >> we are teach ago computer to go through large enough data and look at patterns and understand what they mean. >> gary angel is head of simphonics. that makes it one of the most experienced players in the data gathering game. a big part of what the folks do is scan the web and analyze data. it's not unlike what the nsa will try to do at the utah data center. sift through the noise and all of the world's electronic communications, isolate the fragments of troubling data then connect the dots before a threat materializes. >> what do you think would surprise people most about data

mining? what do they know? >> iveng how clumsy it is. how much work goes into a single inclusion of the data. i think there's a sense that computers can do far more than they actually can. >> the biggest challenge isn't collecting and storing it it is making sense of it all. >> there's a selection of terms that a national security person might be interested in. things like radio active or nuclear power or bridges or stations or airports. here's the tricky stuff, if we miss stuff we don't know it. on the other hand, if you turn up lots and lots of things that you say might be threats and none of them are people lose confidence in the data. it's the old cry wolf syndrome. >> according to angel even big brother faces road blocks. if the nsa wants to track you the you utah data center will have theable to do it. -- will be able to do it.

>> the computer froze out on something trnt and important. >> do you think people have accepted in the post 9-11 age they are going to trust the government to do what is write with the digital data? >> would any of us go back to a world without internet? probably not. the world is better. along with it being better we have introduced a whole new set of risks. >> when we return growing up in an age when all of the stupid things you do can live forever on the internet. i was cooking dinner for my family.

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>> in the late 1800's future supreme court justice worried about a new phenomenon. snapshot photography. if newspapers could snap and print any one's picture, what

would happen to our privacy? years later on the bench he wrote that the right free people value most is the right to be left alone. if that's still through, why are so many people putting so much out there on-line? >> what do you think are some of the thing you need to think about before you put a photo on-line? >> welcome to the elementary school in southampton. kevin is steeching his 6th grade class how not to ruin their lives with their iphones or whatever gets them on-line. >> we have been doing it for about three years. partly because i was noticing my students talking about their lives on facebook and it was clear they weren't quite sure how to navigate through that. >> you should ask yourself do you really need to put this up there. >> do you really need to put this up there.

>> one of the things i notice with 11-year-olds they are fearless of technology they will dive in whatever it is and figure out the ramifications. >> what can be the harmful effects be. >> talking about developing a digital personality right now that will impact going to jobs in the future and colleges. hard for a kid to grasp. >> i tell my kids you can't do things or say things a certain way it will follow you. >> stacy's son anthony is in his class. she also has a tenth grade daughter francesca both have laptops and i pads. >> what are your concerns about that? >> i want them to go to college some day. i want them to not have the admissions office come and say, well, this is happening when you were in high school or in 7th grade or things like that. >> of course it wouldn't be surprising if some kids thought their parents worried too much. after all think about all those ridiculously rich and famous people who arguably got that way thanks to many of parent's worst

nightmare in the internet age. kim kardashian tesex tape was u loaded on the internet. soon she was a reality show star and the center of a multi million dollar empire. paris hilton was a local new york socialite hoping for a reality show hit. her sex tape on the internet helped make that happen. >> charlie sheen's career was teetering on the brink. he began tweeting all sorts of embarrassing messages and posting videos that in an earlier day would have finished him. as it happens, these days you can dig yourself out of a hole by shoveling deeper. >> they would rather have the fame and celebrity than have i guess i would call it a sense of self-respect. >> daniel hettinger of the editorial page calls it the world of indiscretion. >> do you keep that in the back of your mind that your son out daughter may do something

outrageous just to get known. >> i didn't until you were telling me. i am thinking oh my goodness. >> it is scary for me to think that way. >> he captures one of the great paradoxes of the digital age. novelist george other well managed our society in which every movement is monitored by an all seeing figure called big brother. today big data has far more ability than even orwell imaged to see, record, analyze everything we do. to even know much of what we think. but one thing would surely surprise orwell. instead of citizzns demanding their privacy they can't gwait o give it away. >> if the root end is behaving like a moron a lot of people are willing to give up their privacy, give up their sense of shame, give up their embarrassment. >> the problem is there's not enough fame or fortune for

everyone with a digital camera and a broadband connection. the capacity to screw up your life does seem lime mittless. >> dominos pizza employee fired and criminally charged after posting a video of themselves doing gross things to food they were repairing: >> a high school math teacher put on leave after putting on pictures of herself topless and allegedly smoking pot. >> today i am announcing my resignation from congress. >> who can forget married new york congressman anthony weiner forced to resign in disgrace after a tweeted picture of his privates went viral. >> there was a point in the past if you were about to do something like that there woulden a voice in the back of your head saying, i don't think you should do this. >> how many of you have an iphone or an android or a galaxy or ipad?

put up your hand. which brings us back to the massachusetts classroom. with all of the mixed messages out there, which choices will these kids make? >> as a parent what do you do? you trust? you have blind faith? >> yes. i hate to admit it, but yes. and try to keep the conversation open. >> two generations ago gordon moore the founder of intel predicted computers would double their capacity about every two years. this proved so accurate it has become known as mooers law. modern data collected has expanded with breath taking velocity. the question is whether our social political legal solutions can keep up to ensure big data doesn't turn into big brother. ultimately it is only as aware informed citizens in other words by carefully watching for ourselves what's going on around us that we will get and keep the

country we want, one that is efficient, one is that safe, but also one that doesn't always have us looking over our shoulders. that's our show. thanks for watching. using telemedical and mobile technologies, verizon innovators are connecting trauma surgeons to patients in the field.

helping them get the attention they need, before they even reach the hospital. because the world's biggest challenges deserve even bigger solutions. powerful answers. verizon.

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